US Stock Market Keenly Awaits Outcome of US-China Trade Talks

(3 Minutes Read)

Even though many tariffs are on hold, they’re still affecting companies and their ability to make profits because of all the uncertainty they’ve created.

U.S. stocks remained in limbo as investors waited to hear the outcome of trade talks between the United States and China. The S&P 500 was edging up by 0.1% in early trading as talks between the world’s two largest economies carried into a second day. The Dow Jones Industrial Average was up 25 points, or 0.1%, as of 9:32 a.m. Eastern time, and the Nasdaq composite was 0.1% higher.

Stocks have roared mainly higher since dropping roughly 20% below their record two months ago, when President Donald Trump shocked financial markets with his announcement of stiff, wide-ranging tariffs. Much of the rally was due to hopes that Trump would lower his tariffs after reaching trade deals with countries worldwide, and the S&P 500 is back within 2.2% of its all-time high, which was set in February.

It’s getting to be time to see whether such hopes were warranted. The talks with China, which likely cover a range of disagreements between the two countries, were “going well,” U.S. Commerce Secretary Howard Lutnick said as he arrived Tuesday morning. He expected them to continue all day in London.

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Both the United States and China have paused many of their tariff announcements against each other as talks continue. Even though many tariffs are on hold, they’re still affecting companies and their ability to make profits because of all the uncertainty they’ve created.